AIS Quiz 1

the IT strategic roles of AIS investments are classified as

Automate, Informate, Transform

which designation would most appropriate for those professionals possessing an IT audit control and security skills?

CISA

which designation is for CPAs with a broad range of technology knowledge and experience?

CITP

the income statement line item most likely affected by AIS investment in supply chain that would interface with suppliers would be

Cost of Goods Sold

Accounting and Finance is a primary activity in the value chain

False

business value is defined as

Items, events and interactions that determine the financial health and well being of the firm

The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits.

True

customer relationship management is defined as

a system used to manage and nurture a firms interactions with its current and potential customers

support activities in the value chain does not inclue

accounting and finance

many hospitals and doctors offices are beginning to digitize the medical records of their patients. this is an example of the _____ strategic role

automate

activity based costing is an example of

discretionary information

which of the following are not a characteristic of useful information

easy to understand

an example of an AIS that primarily addresses internal business processes includes:

enterprise systems

Accounting Information Systems at this date are all computerized

false

Data is defined as being information organized in a meaningful way to the user.

false

Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service is an example of discretionary information

false

Relevant information is that information that is free from bias and error.

false

The certified information technology professional (CITP) is a professional designation for those with broad range of technology knowledge and does not require a CPA.

false

a value chain is defined as the flow of materials, information, payments, and services from customer to supplier.

false

an enterprise system is primarily used to manage and nurture a firm's interactions with its current and potential clients

false

outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials, and distributing those materials to manufacturing where and where they are needed.

false

the characteristics of reliable information are that the information is verifiable, without bias and timely.

false

the main financial benefit of Customer Relationship Management practices reduces the cost of goods sold.

false

which of the following are considered to be mandatory information required by a regulatory body?

financial reports for the securities and exchange commission

according to a recent study the transform IT strategic role is defined as systems that

fundamentally redefine business processes and relationships

the correct order of effects in the value chain are

inbound logistics-operations-outbound logistics

the role of accountants in accounting information systems include all except

operator

a supply chain system does not include information about

prospective customers

according to a recent study, the informal up IT strategic role is defined as systems that

provide information about business activities to senior management.

accounting information systems are

records, processes, and reports

A supply chain

refers to the flow of materials, information, payments, and services

a simple information system includes all but the following elements except

reporting

the income statement account most likely affected by an AIS investment in customer relationship management would be

revenues

the income statement line item most likely affected by an AIS investment in enterprise systems would be

selling, general and administrative expenses

the information value chain is defined as

the overall transformation of data from a business need to the ultimate decision.

EBay uses information technology to sell goods on the internet. this would be an example of the _____ strategic role

transform

A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.

true

Business value includes all those items, events and interactions that determine the financial health and well being of the firm

true

CRM software includes the use of database marketing tools to learn more about the customers and to develop strong firm to customer relationships

true

Information is defined as being data organized in a meaningful way to be useful to the user.

true

The Certified Information Technology Professional is the position created by the AICPA to recognize CPA's who have the ability to provide skilled professional services on information technology.

true

The Sarbanes Oxley Act of 2002 is a federal law in the United States that set new and enhanced standards for all U.S. public companies, management and public accounting firms.

true

a well designed and well functioning AIS can be expected to create value by providing relevant information helpful to management to increase revenues and reduce expenses.

true

an accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial information for decision making and control

true

an efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses.

true

an enterprise system is a centralized database that collects data from throughout the firm. this includes data from orders, customers, sales, inventory and employees.

true

information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.

true

service activities as defined in the value chain are those activities that provide the support of customers after the products and services are sold to them.

true

the characteristics of relevant information include predictive value, feedback value, and timeliness

true